Debt Consolidation
Date: Sat, 07/30/2005 - 11:57
If we take a debt consolidation loan including credit cards, are the credit cards closed, or do you pay them off and they remain open? Same question applies to lines of credit.
When you enter into any sort of consolidation program, all the a
When you enter into any sort of consolidation program, all the accounts that have been included in the program are frozen or closed with the purpose that you don't put any additional debt in it.
This is done to make your repayment process easier and the consolidation loan amount is contributed into those accounts to complete the payments.
Closing the accounts will make the debt payments faster otherwise if the accounts are kept active, it will seem like chasing the moving target.
Your credit report will appear clean after the payments are made to your creditors and you will be able to regain your financial standings once again.
